Teesside hailed as £3 billion of net zero projects are given the go-ahead
The Energy Security and Net Zero Secretary Grant Shapps has announced £3 billion of Net Zero projects have been given the green light by Government – just days after the Chancellor committed £20 billion to the sector in the Budget.
Net Zero Teesside will become the world’s first gas-fired power plant with carbon capture and storage facilities, producing up to 860 megawatts of electricity - enough to power around 1.3million homes per year. Up to two million tonnes of CO2 emissions from the power station will be captured per year and transported offshore for storage.
The scheme, driven by a consortium of energy companies led by bp, will represent ground zero for clean industry in the UK. This £1.5billion investment will create up to 5,500 jobs during its construction and will add up to £300million to the economy each year.
In October 2021 the East Coast Cluster, including NZT, was named one of the UK’s first two CCUS clusters following a successful bid in Phase 1 of the government’s process.
Alongside this, BOC’s Teesside Hydrogen CO2 Capture scheme – also part of the East Coast Cluster – plus bp’s H2 Teesside and Kellas Midstream’s NorthEastH2 hydrogen production projects have also been given the go-ahead by Government to move into Phase 2, making Teesside the centre of the UK’s decarbonisation ambitions.
Ben Houchen, Tees Valley Mayor said:
“Teesside has always been a world leader, first with steel, now with green technology and decarbonising industry – other areas across the country talk about it, the difference here is, we crack on and deliver it.
“Net Zero Teesside will be the first industrial scale project of its kind in the world, providing energy security to the UK, meaning cheaper bills for hard working people, whilst helping us meet our environmental targets nationally - it really is win, win.
“Projects of this scale don’t happen overnight, we have spoken for some time about the enormity of this project and today marks an historic day where this monster £1.5 billion project takes a giant leap forward to becoming a reality.
“We have always had the people and the skills, now we have the jobs and investment to match and I’m pleased that’s been recognised by the Government as the UK’s clean energy powerhouse.
“With thousands of jobs confirmed, this is the start of delivering on the promise I made to the people of Teesside, Darlington at Hartlepool to bring back good-quality, well-paid jobs to our industrial heartland.”
Ian Hunter, Managing Director, Net Zero Teesside Powersaid:
“The selection of NZT Power is a hugely positive step forward for Teesside and the UK. NZT Power will create and support thousands of jobs, whilst providing enough low carbon power to meet the electricity needs of around 1.3 million homes.
“NZT Power is designed to provide flexible low-carbon power – an essential back up to intermittent forms of renewable power – enabling the further deployment of wind and solar power nationally.
“Thank you to our partners in DESNZ for continuing to maintain momentum and support.”
Adding to Teesside’s green credentials is the world’s biggest, £450 million, offshore wind turbine monopile manufacturing plant, now being constructed by SeAH Wind Ltd on Teesworks.
The site – the UK’s largest industrial zone and heart of the Teesside Freeport – is also rumoured to be the front-runner for a Rolls-Royce facility producing key components for its Small Modular Reactor (SMR) nuclear plants.
As well as providing net zero power for multiple applications, these will also help provide energy for the manufacture of green hydrogen. A decision on the final location is, however, expected to still be some way off.
Work is expected to start on the NZT project in a matter of weeks with the first commercial operations expected in 2027.
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